Vega Corporation Co., Ltd. · TSE:3542
Vega — Q1 FY2025 Earnings Presentation
29 slides from Vega's earnings presentation, August 2024
Slide 1: Quarterly Financial Results
For the Three Months Ended June 30, 2024 Quarterly Financial Results Vega corporation Co., Ltd. Securities code: 3542
Slide 2: INDEX
1 Overview of Quarterly Financial Results for the Three Months Ended June 30, 2024 2 Report on LOWYA Business INDEX 3 Report on DOKODEMO Business 4 Financial Results Forecast for the Fiscal Financial results briefing materials Year Ending March 31, 2025 2
Slide 3: Overview of Quarterly Financial Results for the Three Months Ended June 30, 2024
Overview of Quarterly Financial 1 Results for the Three Months Ended June 30, 2024 Financial results briefing materials
Slide 4: Financial Highlights (1Q)
Financial Highlights (1Q) As a result of the shift to a profit-oriented management policy from 2Q of the previous fiscal year and the efforts made in each business operation, results were generally favorable compared with the 1H plan. Net sales decreased to 3,598 million yen (86.6% YoY), while opera
Slide 5: Net Sales
Net Sales Due to the profit-oriented measures, taken since 2Q of the previous fiscal year, access count and distribution declined, with 1Q net sales of 3,598 million yen (86.6% YoY). 1Q Quarterly (Million yen) (Million yen) YoY 86.6% 4,154 4,505 4,200 4,180 4,154 4,251 4,086 3,598 3,906 3,751 3,598
Slide 6: Operating profit
Operating profit From 2Q of the previous fiscal year, each business implemented profit-oriented measures, resulting in 1Q operating profit of 202 million yen (+237 million yen YoY). 1Q Quarterly (Million yen) (Million yen) YoY +237 million yen 469 274 202 202 123 99 62 53 62 (34) (34) 1Q 1Q 1Q 2Q 3Q
Slide 7: Causes of Increase/Decrease in Quarterly Operating Profit (1Q)
Causes of Increase/Decrease in Quarterly Operating Profit (1Q) In the LOWYA business, in an effort to improve profitability, the Company worked on optimizing advertising expenses and other initiatives. As a result, the Company improved operating profit. Causes of increase/decrease in operating profi
Slide 8: Balance Sheet
Balance Sheet The Company continued to be debt free and maintained a high equity ratio of 80.6%. (Million yen) As of March 31, As of March 31, As of June 30, 2024 As of June 30, 2024 2024 2024 Current assets 6,153 5,935 Current liabilities 1,586 1,294 Cash and deposits 1,750 2,032 Debt obligations -
Slide 9: ROE/Profit Margin, Dividend per Share
ROE/Profit Margin, Dividend per Share The Company plans ROE of 12.4%, profit margin of 4.2% and to pay a dividend of 11 yen per share for the fiscal year ending March 2025. Its policy is to implement continuous dividend payments with a target DOE of 2.0% and the remainder is to be invested in growth
Slide 10: Sustainability
Sustainability Of ESG, the Company conducted activities related to the environment and society. It will also continue making various studies, including considering measures to reduce CO2 emissions and strengthen governance. Donation of Reduced packaging Adoption of photographed goods size for shippi
Slide 11: Report on LOWYA Business
Financial results briefing materials 2 Report on LOWYA Business
Slide 12: Major Indicators (1Q)
Major Indicators (1Q) The Company changed its policy to focus on profit and optimized promotion expenses and advertising expenses from 2Q of the previous fiscal year. As a result, net sales were 3,507 million yen (86.7% YoY). Membership of the flagship store and the number of engagement accounts gro
Slide 13: Net Sales
Net Sales From 2Q of the previous fiscal year, the Company optimized promotion expenses and advertising expenses in an effort to improve profitability. As a result, net sales were 3,507 million yen (86.7% YoY). 1Q Quarterly (Million yen) (Million yen) YoY 86.7% 4,381 4,045 4,151 4,001 4,017 4,045 3,
Slide 14: Monthly Net Sales
Monthly Net Sales From 2Q of the previous fiscal year, the Company optimized promotion expenses and advertising expenses in an effort to improve profitability. As a result, net sales remained at 80% to 95% YoY. Promotion expense ratio (1Q) Net sales (monthly) 4.8% (Million yen) FY2024 FY2025 YoY 0.7
Slide 15: Operating Profit
Operating Profit From 2Q of the previous fiscal year, the Company optimized promotion expenses and advertising expenses in an effort to improve profitability. As a result, operating profit was 200 million yen (+214 million yen YoY). 1Q Quarterly (Million yen) (Million yen) YoY +214 million yen 462 2
Slide 16: Number of Customers/Average Basket Value
Number of Customers/Average Basket Value The Company optimized promotion expenses and advertising expenses in an effort to improve profitability. As a result, the number of customers decreased from the same quarter of the previous year. Average basket value remained stable. Number of customers Avg.
Slide 17: Gross Profit Margin Ratio/Exchange Rate
Gross Profit Margin Ratio/Exchange Rate Although the yen weakened significantly, gross profit margin ratio was 51.0% (up 4.5 pt YoY) due to the reduction of promotion expenses and the effect of price pass-throughs. Gross profit margin ratio Exchange rate (%) (Yen/USD) 4.5 pt increase 161.07 51.0 149
Slide 18: SG&A Expenses and SG&A Expense Ratio
SG&A Expenses and SG&A Expense Ratio In an effort to improve profitability, which started in 2Q of the previous fiscal year, the Company worked to optimize advertising expenses. As a result, the selling, general and administrative expense ratio was 45.3% (down 1.5 pt YoY). 1Q Quarterly (Million yen)
Slide 19: Flagship Store Membership, Age Distribution, Ratio of Male vs. Female
Flagship Store Membership, Age Distribution, Ratio of Male vs. Female Membership of the flagship store is steadily increasing, with strong support from people in their 20s and 30s. Trend in membership of flagship store Age distribution (Thousand people) 60 and older 50 to 59 2% 6% 1,643 40 to 49 1,6
Slide 20: New Products
New Products Release products with a focus on our own private brand products that are design- and trend-conscious and pursue affordable prices with cost competitiveness. Furniture Other Choice of tabletop-type, 5-piece dining set Coil 2-layer mattress 3D circulator from 99,970 yen (tax included) fro
Slide 21: Apps and Social Media
Apps and Social Media The internally developed official app and operation of social media function as the key to attracting customers. 1.55 million smartphone app downloads, and more than 1.05 million Instagram followers. They are steadily increasing. Sizes of engagement channels that deliver a uniq
Slide 22: Actual Store Locations
Actual Store Locations The Company plans to open stores in Yokohama in August 2024 and Tokyo in September 2024. In addition, the Company decided to open stores in Hiroshima in October 2024, Osaka (Ibaraki) in November 2024, and Shizuoka in the winter of 2024. Store name: LOWYA MARK IS MINATOMIRAI St
Slide 23: Report on DOKODEMO Business
Financial results briefing materials 3 Business Report on DOKODEMO
Slide 24: Major Indicators (1Q)
Major Indicators (1Q) The Company changed its policy to focus on profit from 2Q of the previous fiscal year. As a result, GMV was 569 million yen (76.1% YoY), and net sales were 91 million yen (83.3% YoY). Membership and the number of app DLs remained steady. WONDERFULL, a flagship store of WANDOU o
Slide 25: GMV and Net Business Income
GMV and Net Business Income The Company optimized promotion expenses and advertising expenses in an effort to improve profitability. As a result, GMV was 569 million yen. However, the revenue structure improved, and the business balance ended in the black. GMV Net Business Income (Million yen) (Mill
Slide 26: Ratio of GMV by Destination Area
Ratio of GMV by Destination Area Deliveries to Asia, mainly Taiwan, account for about 90% of GMV. By region By country Middle East 0.6% Oceania 1.3% Europe 1.8% North America South Korea 6.5% U.S. 0.5% Hong Kong 2.9% 5.5 Taiwan 6.8 3 .8% % 84.4 83 .6% Malaysia Asia 0.3% Philippines 0.2% 89.8% Singap
Slide 27: Financial Results Forecast for the Fiscal Year Ending March 31, 2025
Financial Results Forecast for 4 the Fiscal Year Ending March 31, 2025 Financial results briefing materials
Slide 28: Financial Results Forecast for the Fiscal Year Ending March 31, 2025
Financial Results Forecast for the Fiscal Year Ending March 31, 2025 No change from the forecast disclosed on May 15, 2024. Fiscal year ending March 31, 2025 YoY First-half forecast Full-year forecast First half Full year Net sales (million yen) 7,600 17,000 96.1% 105.8% Operating profit (million ye
Slide 29: IR Inquiries
Views and forecasts in this document are based on the judgment of the Company at the time of preparing the document. These statements are based on current expectations, forecasts, and assumptions that are subject to risks, and contain uncertainties that could IR Inquiries cause actual outcomes to di